IRS Form 7004: This form is used by businesses such as Multi-Member LLCs, C Corporations, S Corporations, Partnerships, Trusts, and Estates. This is commonly referred to as a form forBusiness Tax Extensions. This IRS Form gives aTax Extension of 5 – 6 months.

IRS Form 4868: This form is used for filing Individual or Personal Tax Extensions. This IRS form gives a Tax Extension of 6 months for personal returns, 1099 Contractors, Sole Proprietorship’s, and Single-Member LLCs.

IRS Form 8868: This form is used by Non-Profit and Exempt Organizations.This IRS form is used to apply for an automatic 3 month tax extension or a non-automatic (additional) 3 month extension.

Filing Status: If you are filing for an individual tax extension, it is required to list your filing status (married filing jointly, single, married filing separately, etc.).The same way if you are filing an Extension for a business or nonprofit organization, it is required to list your business or organization’s type and the specific tax form that will be filed.

Business Tax Year: It is common to use the calendar year as the business tax year but that is not the case for every Business.If a business follows a different tax period, that needs to be specified. Also if a business was started or ended during the year, its tax period may be shorter than a full year and that needs to be specified too.

Estimated Tax Amount: A Tax Extension extends only the amount of time to file a tax return. It does not extend the amount of time to pay taxes. Therefore, you need to pay the full Tax amount that is due to the IRS by the traditional deadline.

Every year brings new tax season and along with it great stress and anxiety among tax payers. Why? Because tax season means collecting tax papers, doing complex calculations, contacting IRS and etc. Result? Stress, time consumption and more stress. Did you know that during the tax season, most of the people lose on their sleep and hence suffer health consequences?

There are 2 ways to file for tax extension: Paper filing and Electronic filing.

Many years back, paper filing was the only option to file tax returns and extension but due to its complexities and disadvantages, IRS introduced the efile option which is highly recommended worldwide. Want to find out how?

Your kids can be helpful at tax time. That doesn’t mean they’ll sort your tax receipts or refill your coffee, but those charming children may help you qualify for some valuable tax benefits.

Here are 10 things the IRS wants parents to consider when filing their taxes this year.

1. Dependents In most cases, a child can be claimed as a dependent in the year they were born.

2. Child Tax CreditYou may be able to take this credit for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit.

3. Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your child or children under age 13 so that you can work or look for work.

4. Earned Income Tax Credit The EITC is a tax benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund.

5. Adoption Credit You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child. If you claim the adoption credit, you must file a paper tax return with required adoption-related documents.

6. Children with earned income If your child has income earned from working, they may be required to file a tax return.

7. Children with investment incomeUnder certain circumstances a child’s investment income may be taxed at their parent’s tax rate.

8. Higher education credits Education tax credits can help offset the costs of higher education. The American Opportunity and the Lifetime Learning Credits are education credits that can reduce your federal income tax dollar-for-dollar.

9. Student loan interestYou may be able to deduct interest paid on a qualified student loan, even if you do not itemize your deductions.

10. Self-employed health insurance deductionIf you were self-employed and paid for health insurance, you may be able to deduct any premiums you paid for coverage for any child of yours who was under age 27 at the end of the year, even if the child was not your dependent.

Forms and publications on these topics are available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

Everyone’s Tax Return is unique to them, and each year there seems to be more and more information to organize. Although your taxesmay have been simple in the past, it’s likely to get more and more detailed each year. For every major life event,taxes get more complicated. For example, if you have a child, adopt a child, buy a house, pay for college, or start a business (to name a few) your taxes become more complicated.

These easy options allow individuals and businesses to properly organize all of their necessary tax documents so that they can be sure that they are receiving the appropriateTax Credits, and paying the right amount. Tax Professionals appreciate it when peoplefile for an extension, rather than bombard an already busy person with much more work on the busiest week of their year. This is another incentive for individuals and organizations to file for a tax extension; accountants and tax professionals are less busy in the summer months than in April. Most tax preparers are neck deep in paperwork by the time the tax deadline rolls around.

Millions of people e-file their tax extension forms every year. The IRS has a digital initiative–a push to get up to 80 percent of their forms online–and tax extensions are included in that. E-filing a federal personal, business and nonprofit tax extension with Form 4868, 7004and 8868 is quick and easy. A tax extension extends the time to file, not to pay taxes (if they are owed).

Assumption: A Tax Extension will delay the time you have to pay taxes.

Fact: Taxes Should Be Paid on Time! A Tax Extension extends the amount of time to file the tax return. This means that you have more time to prepare all of your tax-related documents and get the most out of your credits and refunds.

Filing an extension with Form 4868, 7004 and 8868 has become much easier and quicker.This is because the option to E-File has become more and more popular as compared to traditional paper filing.
There are several online options for filing a Form 4868, 7004 and 8868 with the IRS. The best, easiest and cheapest is www.Extensiontax.com. This allows you to E-FileForm 4868, 7004 and 8868 from your home or office. There is no need to go anywhere, mail anything, or worry about whether it gets there on time.